Blockchain has single-handedly transformed the online marketplaces. The trading sector is also disrupted by blockchain because sharing information and money through this platform is plain and simple. Through this, the traditional e-commerce platforms will become obsolete. Alibaba is investing heavily in blockchain R&D, and Walmart and Unilever have entered into a collaboration with tech giant IBM.
Benefits of Using Blockchain
The blockchain is decentralized structured and has no third party or intermediary. Its users completely run it without any central platform.
The benefits of blockchain are:
There are no regular working hours of this platform. Blockchain works 365 days a year and can be accessed from any region and any time zone. Since every transaction is made within the network, there’s no need for approval of any sort from intermediary institutions. This process makes the transactions smooth and hassle-free.
Less Transaction Costs
The absence of intermediary institutions means that there are no extra charges to be paid and the distributed database needs less maintenance saving money in the process.
The blockchain is an open source tech. There is no central entity owning and keeping the platform. So, there is no need for policies for this marketplace. Additionally, many users track the data so it cannot be tampered. Thus, it boosts the security of the entire system.
Nowadays, data is currently stored in a central place and controlled by a central party. This brings cybersecurity to risk. Since blockchain is decentralized, the data stored in it is also decentralized. It is virtually impossible to hack an entire blockchain. So, implementing blockchain in e-commerce secures the data.
Blockchain Workplace Mechanism
The blockchain is a platform where buyers and sellers link unswervingly, and the transaction is done with no third party interference. Buyers and sellers communicate with each other on the blockchain platform. Sellers publish their products and buyers make the purchase. Organizations are trying to solve real-world problems of the financial sector through blockchain technology. They wish to do it by smart contracts between buyers, sellers and financers, and providing quick settlements of payments.